Highlights
| Net amount invested to 26 January 2012 |
£-0.2m |
| Ownership stake at 26 January 2012 |
39% |
| Sector |
Container Logistics |
| Location |
Chennai, Tamil Nadu, South East India |
| Progress to date |
Revenue generating & dividend paying |
| Investment partner |
Sattva Business Group
www.sattva.in |
Summary
Sattva Vichoor CFS (Container Freight Station) near Chennai in the southern State of Tamil Nadu is a profitable container logistics business providing a full range of services, including bonded warehousing, secured and paved stacking areas, on-site assembly, computer-driven tracking systems and office facilities. The Eredene Group's first investment with the Sattva Business Group, it progressed from greenfield site to paying its first dividend in less than two years, and in 2011 it paid a dividend for the third consecutive year. Eredene originally invested £0.9m for a 49% stake in the CFS and through its subsidiary it sold 10% of its holding to Sattva Business Group in January 2012 for £1.1m, representing a return multiple on the original investment of 5.9 times.
The 26-acre CFS, which handles containers from Chennai Port, logged 60,000 TEUs (twenty foot equivalent units) in the year ended 31 March 2011, compared to 45,000 in 2010.
Customers include South Korean machinery manufacturer Doosan, NYK Line, Maersk, CMA-CGM, and MSC Shipping Company.